Apple Cuts iPhone Air Production Amid Weak Demand, Shifts Focus to iPhone 17 Pro Models

Apple is reportedly reducing production orders for its new iPhone Air and redirecting resources toward other iPhone 17 variants, according to Nikkei. The move follows weaker-than-expected consumer interest in the lighter, more affordable iPhone Air model, unveiled as part of the iPhone 17 lineup. Shares of Apple (AAPL) fell 0.7% in U.S. premarket trading following the report.

Industry analysts suggest the decision underscores Apple’s continued reliance on its premium devices to drive growth. A recent KeyBanc survey led by analyst Brandon Nispel revealed “virtually no demand” for the iPhone Air and limited interest in foldable smartphones. “We see ASPs, not units, being the driver of growth in FY26,” Nispel wrote, referring to average selling prices. He added that while Apple’s stock trades at all-time highs, it reflects lofty investor expectations.

The KeyBanc report pointed to stable demand for the broader iPhone 17 series, with consumers showing stronger preference for Pro and Pro Max models. Analysts expect Apple’s fiscal fourth-quarter iPhone revenue to exceed expectations, supported by initial shipments and higher selling prices, though performance may normalize in the following quarter. “Midterm unit pressure offset by ASP uplift” is projected to sustain growth, while Apple’s new AI-driven features have yet to significantly influence purchase decisions.

Meanwhile, Bloomberg reported delays in Apple’s foldable iPad project due to technical challenges, suggesting a longer timeline before its release. The production cuts for the iPhone Air could also impact Apple’s supply chain partners across Asia, potentially affecting manufacturing forecasts in the coming months.

Overall, the developments highlight Apple’s focus on profitability through premium models amid shifting consumer preferences and muted excitement for experimental form factors.